MHADA likely to auction cessed buildings

A day after Hussaini building crashed on its residents, killing 33, the state government is racking its brains to work out a solution to promptly renovate the most rickety and unsafe cessed buildings in the island city: there are 16,000 of them and 3,000 need to be mended urgently. One of the four redevelopment options the state is looking at is picking a builder by conducting an auction of cessed buildings or by floating a tender.

Under the arrangement, state's development agency the Maharashtra Housing And Area Development Authority (MHADA) will give 90 days to the landlord of a cessed building to initiate redevelopment. If this time period is breached, then MHADA would step in and invite bids from developers to take on the project while monitoring the redevelopment. A typically old building whose tenants pay cess — a form of tax — to MHADA for structural repairs is termed as a cessed building.

To execute the scheme, under which the landlord, tenants and the developer would be assured of a share, the state is mulling over amending the Mhada Act, 1976, or modifying regulations.

Alternatively, the agency is considering providing a floor space index (FSI) of 3, permissible under Development Control Rule 33(7), or a 50 per cent saleable FSI component, whichever is more, as an incentive to attract redevelopers.

As a third option, Mhada hopes to expedite cluster development under Development Control Rule 33 (9), which enables a developer to use an FSI of 4 to develop an area which is at least 4,000 square metre.

Its last resort is forcibly evicting occupants, something that is allowed under section 95A of the Mhada Act. But before that, the housing body will seek legal opinion to see if it can amend the Mhada Act to be able to undertake redevelopment of old buildings through developers after tenants are evicted and rehabilitated in transit camps.

State housing minister Prakash Mehta told DNA, "Within the next eight days, the department will draft a proposal to fast-track redevelopment of old, dilapidated buildings in Mumbai city and submit it to Chief Minister Devendra Fadnavis for approval. A key point will be appointment of Mhada as the planning authority for a particular area. After the CM's nod, the amendments to the Act and rules will be worked out."

Prasad Lad, former chairman of Mhada's Mumbai Building Repairs and Reconstruction Board (MBRRB), said the government can amend section 103 (B) of Mhada Act to provide more FSI to builders to make redevelopment viable. "Under this arrangement, the self development of such structures is likely to be allowed through a consortium of banks. Besides, the landlord would be given 125 per cent of the Ready Reckoner value instead of 100 months' rent in advance to expedite redevelopment, he said, adding, "Also, the government may consider a new law on the lines of Real Estate Regulatory Authority (RERA), where stages of completing redevelopment will have to be fixed. A three-year deadline would be made compulsory and if the developer fails to adhere to them, then Mhada should take over and complete the project.''